New analysis from Evaluate Energy shows that the second quarter saw US$27.1 billion in new upstream oil and gas M&A deals.

This represents a 60 per cent drop in total upstream M&A spending from the first quarter of 2017 and a 58 per cent drop compared to the fourth quarter of 2016.

The total is roughly in line with activity prior to OPEC's decision to cut oil production in November, which delivered an instant boost to oil prices, sector confidence and investment via M&A. Since then, however, global inventory levels have hardly shifted and oil prices have dropped.

Source: Evaluate Energy Q2/2017 Global M&A Review

The largest deal of the quarter saw EQT Corp. boost its Marcellus and Utica shale position via the US$8.2 billion acquisition of Rice Energy. Since 2016, EQT has added more than 485,000 acres to its development portfolio, achieving significant scale in the core of the Marcellus, noted CEO Steve Schlotterbeck.

With other significant U.S. deals occurring the San Juan and Piceance basins, the Permian Basin for once took somewhat of a backseat during the second quarter.

Full analysis on all of these deals is available for free download in the new Evaluate Energy report, along with details on other major transactions in Europe and around the world and insight into the fallout from the first quarter's Canadian oilsands acquisitions.